...Our ratings on MS&AD Insurance Group's core operating subsidiaries reflect our assessments of the group's business risk profile as very strong and financial risk profile as strong, leading us to apply an anchor of 'a+' for the group. Our ratings on MS&AD Insurance Group benefit from its diverse non-life and life insurance income streams, as well as its expanding overseas business. The group's strong market position in Japan's non-life insurance market is the pillar of its credit strength, supported by a stable income stream from its domestic life insurance business. We expect the group to maintain its capital adequacy within the 'A' confidence level in our risk-based capital model because of its solid earnings and risk control. However, we view the group's capital and earnings to be susceptible to stock market movements and catastrophe losses. In fiscal 2017 (ended March 31, 2018), the group incurred large natural catastrophe losses and experienced an earnings decline at MS Amlin, the group's...
